Loading

MINNESOTA

Why Form a Limited Liability Company (LLC)?


$49 + State Fee & 1st Year FREE Registered Agent

See Detailed Pricing

Taxes and Fees for Your Minnesota LLC

Here’s a breakdown of the likely taxes and fees you’ll incur when you start and run an LLC in Minnesota.

Minnesota Fees

Minnesota LLC Formation and Filing Fee

When you first form your LLC in Minnesota, you will need to pay a fee to file your Articles of Organization. You can find the current fees and turnaround times here.

Minnesota Permits and Licenses

You will need to pay licensing and permit fees on a regular basis depending on the type of business you are operating and where you are located. These vary from city to city and industry to industry. If you don’t want to do the legwork yourself, we provide a complete Business License Research Package that will tell you all of the licenses and permits required for your new LLC. It includes:

  • A comprehensive package of all the licenses, permits and tax registrations required for your business
  • The application forms to file with the appropriate licensing authorities
  • Your customized Business License Research Package will be emailed to you within two days of your company being filed by the state

Remember that operating your business without the required licenses can expose you to risks and fines from state and local governments.

Minnesota Fees

  1. Turnaround times for forming an LLC in Minnesota: You will normally have the option of a “Standard” turnaround time and an “Expedited” turnaround time for forming your LLC. You can learn about those times here.
  2. Fees for forming an LLC in Minnesota: Learn about standard filing costs here.
  3. Minnesota State Annual Report Fee: There is no fee to file your annual report.
  4. Minnesota Permits and Licenses: Various fees for renewing your licensing and permit fees on a regular basis. These depend on the type of business you are operating and where you are located. They vary from city to city and industry to industry.

Minnesota Taxes

Minnesota State Income Tax

Minnesota charges a state income tax of between 5.35 percent and 9.85 percent.

Minnesota State Sales/Use Tax

If you’re selling products or services in Minnesota, you may need to pay a state sales tax of between 7 percent and 8 percent.

Minnesota Other Taxes

You may need to pay other taxes and fees, depending on the type of business you run. Learn about other Minnesota taxes.

Federal Taxes

Self-Employment Tax

Because your Minnesota LLC income flows through to your personal tax return, you must pay self-employment tax (also known as FICA, Social Security or Medicare tax) on your earnings. This is typically at a rate of 15.3 percent. You will be able to deduct your business expenses from your income when working out how much self-employment tax you owe. Note that if you are an LLC electing to be treated as an S Corp, you can reduce your self-employment tax.

Federal Income Tax

You will also need to pay regular federal income tax when you file your tax return every year. You can find details of federal tax brackets online. Note that you will be able to apply your standard deduction, personal exemption and business expenses to this tax.

Employee Insurance and Taxes

If you employ others, you will need to pay insurance and taxes to the state for each employee. Here’s how to register for the various employee taxes, insurance and other costs. You can find out more here: Minnesota Employment and Economic Development.

Ready to Start Your Minnesota LLC?

Incfile provides a cost-effective service to help you create your Minnesota LLC. We guide you through the process and handle most of the administrative steps, such as filing the Articles of Organization. Our basic package also provides a free Registered Agent service for the first year.

Only $49 + State Free To Launch Your Business

Clear Pricing. No Contracts. No Surprise.

What are the fees and requirements to form a business in Minnesota?

Filing Time and Price

The state charges this amount to file a new business entity. This fee goes directly to the Secretary of State.

State Fee State Filing Time Expedited Filing Time
$155 5 Business Days 1 Business Day

Compliance Requirements

This report is mandatory and must be filed within the specified time frame in order for the entity to remain in good standing with the state. Failure to file this report can lead to the company being revoked or administratively dissolved.

Annual Report

Frequency: Annually

Due Date: December 31st

Filing Fee:$0

Learn more about starting a business in Minnesota

Additional resources, guides, and articles for better decision making.

Select the package that works best for you.

Silver

49

+ $155 (state fee)

The Basics To Get You Started

Prepare & File Articles Of Organization
FREE Registered Agent for !st Year
Lifetime Customer Support

Get Started

MOST POPULAR

GOLD

149

+ $155 (state fee)

Everything from Silver +

EIN / Tax ID Number
Personalized Operating Agreement
Customized LLC Kit

Get Started

BEST VALUE

Platinum

299

+ $155 (state fee)

Everything from Silver & Gold +

Expedited Filing
UPS Delivery
Contracts Library

Get Started

Subscribe now to learn more about LLCs and starting a business